Good help is hard to find?
Real Estate Agent · San Luis Obispo, CA · Member since 2016 · 1 post · 0 votes
I am trying to figure out a way my partner and I can communicate better with real estate professionals in Chattanooga, TN.
We are looking to invest in a SFR or duplex in TN. We currently live in CA, but for various reasons have decided to invest in Chattanooga, TN. Numerous times, we have started dialogue with real estate agents, and after a few emails back and forth, they seem to disappear! Is it that we are in California that is throwing agents off? What do we need to say to communicate that we are serious?
We have already booked plane tickets for the end of June, but it seems like at this point, there isn't going to be anyone to show us around! We're ready to invest and would ideally like to be in escrow by the end of this month or the next.
Has anyone else had this issue when investing in another state? How did YOU build a team?
There are several reasons you may be having rough communication. Out of state is tough, just like finding a job out of state, people seem less willing to talk until you are on the ground.
Generational Tech Gap: Much like healthcare, this business is a bit old-fashioned. I have definitely noticed there is a tendency to use phone and text (some emails) over newer forms of communication. Shared calendars and project management systems are very unlikely sells for some of these service providers. This likely changes in 20 years, but it will always lag a bit.
Disorganization: A lot of people who are self-employed (realtors, contractors) are incredibly disorganized. Many service professionals run their businesses primarily on personality and relationships. They are rarely critiqued on their systems and are usually forgiven when they fall behind. Your best consistency will come from people who manage other people. The best turnkey companies and syndicators provide good models for how to communicate, but it's a different kind of transaction with them. A lot of the value you provide will be your ability to organize the chronically disorganized.
Priorities: In the case of realtors, for instance. Many don't like to work with investors because of the lack of emotional pull and rigorous numbers checking. You want to find realtors who are investor friendly and can make you a priority. How will you become a priority? They will know you can close and you can make it easier than any of their local clients.
Probably going to write a Bigger Pockets Blog article on this soon, so this is a nice thing to demo for you. I recommend finding a core value-add you can provide to each person. I had a secretary at a management company who was slow to respond to my emails. As soon as she did, I asked her if she liked Chocolate or Coffee the best. I immediately sent her a gift bag of coffee.
I had another contractor who was a little slow to estimate and work on my property. Found out he was being paid in increments with 60-day wait periods by my management company. His work was good, so I was happy to pay him directly. The moment I received the invoice, I issued a check for the full amount.
Both of these out-of-state contacts have a better opinion of me now because I found something to make their lives better. This won't work every time (some people are just bad), but it may get you some more traction.
At 26 I broke the 7 figure mark for mortgaged real estate, and at 21 I bought my first house priced at 500k, obviously I had these properties mortgaged but I never drove a vehicle that was priced over 5000 dollars. I've gone through contractors, real estate agents, mortgage brokers, banks, etc that tell me there kids are older than me. I pay in cash when the contractors work is completed and always have a hot meal for them at lunch time and a case of beer when there leg of the work is completed.
I truly believe actions speak louder than words, when I wanted to be taken seriously I started making offers, had all my paper work in order, knew my numbers and market in my area. My team has been built through trial and error, which has been very humbling throughout the process.
Reading your portfolio if I, a blue collar carpenter, can pull this off you won't have an issue. You just have to believe in your selfie and be very persistent, very . . . very . . . very persistent.
@Megan Shelton, glad you're considering jumping into the Chattanooga investment scene! Definitely set some key word alerts (if you haven't already) for the area. Chattanooga, Red Bank, Cleveland TN, Northshore, Highland Park, 37404, 37415, Hixson, and 37409 are all potentially useful, depending on what you're looking for.
My wife and I are also out state (actually out of country) investors, and we faced the EXACT same challenge. We had money to spend, and we couldn't get realtors to call us back.
@Thomas DeMoss (who posted above) definitely works with out of state buyers (he works with us), and is very responsive and great with the technology necessary to work with investors from a distance. I don't want to put him on the hook for your upcoming trip, but if he has time, it would be worth reaching out to him. He's an investor himself, so he knows the deal.
Send me a colleague request if you want. I'd be happy to talk about some of our challenges, and successes, investing in Chattanooga from a distance.
Beyond a realtor, let me know if you'd like to talk to a property manager or local accountant. We have both and are happy with each.
Good luck!
...Has anyone else had this issue when investing in another state? How did YOU build a team?
I still have RE agents and contractors that don't answer my calls because
I kept the California number I had had for 6 years prior to
relocating to Detroit.
There are several reasons you may be having rough communication. Out of state is tough, just like finding a job out of state, people seem less willing to talk until you are on the ground.
Generational Tech Gap: Much like healthcare, this business is a bit old-fashioned. I have definitely noticed there is a tendency to use phone and text (some emails) over newer forms of communication. Shared calendars and project management systems are very unlikely sells for some of these service providers. This likely changes in 20 years, but it will always lag a bit.
Disorganization: A lot of people who are self-employed (realtors, contractors) are incredibly disorganized. Many service professionals run their businesses primarily on personality and relationships. They are rarely critiqued on their systems and are usually forgiven when they fall behind. Your best consistency will come from people who manage other people. The best turnkey companies and syndicators provide good models for how to communicate, but it's a different kind of transaction with them. A lot of the value you provide will be your ability to organize the chronically disorganized.
Priorities: In the case of realtors, for instance. Many don't like to work with investors because of the lack of emotional pull and rigorous numbers checking. You want to find realtors who are investor friendly and can make you a priority. How will you become a priority? They will know you can close and you can make it easier than any of their local clients.
Probably going to write a Bigger Pockets Blog article on this soon, so this is a nice thing to demo for you. I recommend finding a core value-add you can provide to each person. I had a secretary at a management company who was slow to respond to my emails. As soon as she did, I asked her if she liked Chocolate or Coffee the best. I immediately sent her a gift bag of coffee.
I had another contractor who was a little slow to estimate and work on my property. Found out he was being paid in increments with 60-day wait periods by my management company. His work was good, so I was happy to pay him directly. The moment I received the invoice, I issued a check for the full amount.
Both of these out-of-state contacts have a better opinion of me now because I found something to make their lives better. This won't work every time (some people are just bad), but it may get you some more traction.